Income Tax Return Late Fees:

• If Income is Upto Rs. 5 L: Rs. 1000 [Section 234F]
• If Income is More than Rs. 5 L: Rs. 5000 [Section 234F]
• No Late Fees will be applicable if taxpayers are not required to file ITR. [Section 234F is applicable to Taxpayers who were liable to file a Return under Section 139]

Section 234F: Fee for Delay in Filing Income Tax Return

• If a person required to file an income tax return under Section 139 fails to do so within the specified time under sub-section (1), a fee of Rs. 5,000 will be charged. However, if the person’s total income does not exceed Rs. 5 lakh, the maximum fee payable will be limited to Rs. 1,000.
• This provision is applicable to income tax returns required to be filed for assessment years starting from April 1, 2018, onwards.

Section 234A: Interest for Late Filing or Non-Filing of Return

The introduction of Section 234F does not alter the applicability of Section 234A. Under Section 234A, interest at the rate of 1% per month (or part of a month) is charged on the unpaid tax amount if it is not paid within the prescribed due dates.

• If the return is filed after the due date, interest is calculated from the due date until the date of actual filing.
• If the return is not filed at all, interest is charged from the due date until the date the assessment order is issued by the assessing officer.